A hallucinogen is a drug that produces modifications in the way one perceives reality. It deforms sounds, images, sensations. It does not simply amplify them, it distorts them, sometimes in an amusing way, other times in a very frightening way.
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A hallucinogen in the true sense of the word is a drug that causes a change in perception that is results in life like visions (or sounds, etc). Drugs that do this are usually classified as deliriants, which can produce hallucinations so life like that they are completely indistinguishable from real life. The drugs considered hallucinogens produce milder altercations of senses such as a change in sound, change in color, motion where it does not exist, etc.
Any substance that makes you experience "visions" or "sounds" or "feelings of things" that are not actually real. One hallucinogen is LSD, lysergic acid diethylamide. Others include THC, tetrahydrocannabinol, found in marijuana, which usually does not create the more vivid perceptive changes that commonly occur with LSD, or mescaline (peyote cactus), or psilocybin (psychoactive mushrooms).
The term has been superseded by "psychedelic". Hallucinogen is inaccurate as the hallucinations are not pivotal to the experience; they are but one possible effect. It would be like calling alcohol an emetic (nausea producing drug) because if you drink to much you could vomit.
The danger in using hallucinogens is that, as with alcohol use, the individual does not have full cognitive control over his actions while under the influence. This can result in unintentional harm to others or to the user.